Propellus Inc (PRPS)

[bigshow81]

The amount of shares you own will decrease with the R/S. If you own 1,000,000 shares and they do a 100:1 R/S you are left with 10,000. Your 990,000 other shares are dissolved. Price will increase from .0001 to .01 but now you have 10,000 shares. If share holders sell their postions in fear of continued dilution after the 1st R/S price will easily drop below .004. So if you bought in at .0001 you would be looking at a 60% loss if the price shot up to .01 from .0001 after a R/S and then back down to .004.

I would recommend .0001 as a good entry point if you can time it right, meaning follow the quarterly reports until you think they are on the verge on showing profit & ending dilution while stock trades at all time lows, which in my opinion will be .0001 at some point. Anyone that bought over the past year or buying now will end up with a fraction of a percent of their orignal holdings due to R/S.